Attached is an Income statement for Fleming Company. Your office burned down. Yo

Question

Attached is an Income statement for Fleming Company. Your office burned down. You found the following date: Fleming Income Statement: Revenue $20,980 Rent Expense $2,400 Depreciation Expense $ 2,200 Supplies Expense $ 960 Office Expense $1,240 total $ 6,800 Net income $ 14,100 And the following Notes The company paid $15,600 in cash dividends. Accounts receivables decreased by $ 1,480 during the course of the year. Accounts payable increased by $ 380 when they purchased supplies. Total cash increased from $ 460 to $ 3100 Prepare the journal entries that occurred during the year. use T account for each account.

Explanation / Answer

Ref Account Title Debit Crecir a Accounts Receivable 20980 Sales 20980 b Rent Expense 2400 Cash 2400 c Depreciation Expense 2200 Acc.Deprereciation 2200 d Supplies Expense 960 Supplies 960 e Office Expense 1240 Cash 1240 f Cash 22460 Accounts Receivable 22460 g Accounts Payable 1080 Cash 1080 h Supplies 1460 Accounts Payable 1460 i Dividend 15100 Cash 15100 1. since there is a decrease of $1,480 in acounts receivable balance,      collection will be $1,480 more than the sales. 2. For cash acount the payment to accounts payable      will be the balancing figure. 3. For accounts payable, there is an increase of $380 in the balance.      Therefore purchase of supplies will be the balancing figure. Cash Accounts Receivable Debit Credit Debit Credit Beg.Bal. 460 2400 b Beg.Bal. f 22460 1240 e a 20980 22460 f 1080 g 15100 i 20980 22460 22920 19820 End.bal. -1480 End.bal. 3100 Supplies Accounts Payable Debit Credit Debit Credit Beg.Bal. 960 d Beg.Bal. h 1460 g 1080 1460 h 1460 960 1080 1460 End.bal. 500 380 End.Bal. Sales Rent Expense Debit Credit Debit Credit 20980 a b 2400 Depreciation Expense Supplies Expense Debit Credit Debit Credit c 2200 d 960 Office Expense Accumulated Depreciation Debit Credit Debit Credit e 1240 2200 c Dividend Debit Credit i 15100

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